Finding Product/Market Fit

Finding Product/Market Fit [OMG.PMF.ASAP.]

Joanna Lord CMO, BigDoor

@joannalord NEXT : April 30, 2014

What is product market fit?

Product/market fit means being in a good market with a product that can

saUsfy that market.

hXp://www.stanford.edu/class/ee204/ProductMarketFit.html

-‐ Marc Andreessen

A repeatable and scalable sales model.

-‐ Steve Blank

Achieving product/market fit requires at least 40% of users saying they would be

“very disappointed” without your product.

-‐ Sean Ellis

It’s what you need to hit before you focus on growth.

But wait…how will I know?

But wait…how will I know?

Oh trust me. You’ll know.

BPMF.

Wondering where the value is? Customers are confused? No organic trac8on. Hard to pitch startup press. Long sales cycles.

…they don’t want it.

APMF.

Customers buying as fast as you can build. Your understaffed. WOM is on fire. Random emails/feedback thanking you. Investment/press/general buzz.

…they need it.

So how do you get there?

Lessons learned from a few

BPMFs, a few APMFs, and some

NFPMFs.

Lesson #1: The Market Wins*

*Every damn Ume.

Team

Product Market

What maXers most. Let’s talk about it.

Team

Product

“In a great market, the product is pulled out of the startup”

-‐ Andreesen

What maXers most. Let’s talk about it.

Market

[important liXle side note]

1.  ExisUng market 2.  Resegmented market 3.  New market 4.  Clone market

4 Types of Market

Recession = high unemployment. High unemployment = job search. Job search = need for job search sites. Need for job search sites = opportunity. Opportunity = Success. Success = lots of fun and money. Lots of fun and money = speedboats.

ASSUMPTIONS:

#realtalk:

Recession = high unemployment. High unemployment = filing for unemployment. Job search = need for job search sites. Need for job search sites = opportunity. Opportunity = Success. Success = lots of fun and money. Lots of fun and money = speedboats.

#realtalk:

#realtalk:

I lost two years* trying to force a market.

*all my savings *angel investment *all my relaUonships *poliUcal currency *confidence *about a million other things

#2. Realize your product is not the product.*

*your business model is.

#realtalk:

#realtalk:

#realtalk:

#3. Start at the pain point

Forget the vitamin, be the painkiller.

#realtalk:

#realtalk:

Help you connect with customers in new ways. Help you engage them throughout their lifecycle. Help encourage social advocacy.

#realtalk:

Help you connect with customers in new ways. Help you engage them throughout their lifecycle. Help encourage social advocacy.

Feed your CRM. Increase your VPC. Drive referrals.

#4. Ask all the quesUons

•  Who needs your soluUon? •  Who would pay for your soluUon? •  Who approves that charge? •  What are they doing now to solve for that? •  What is the dream soluUon? •  The minimum soluUon? •  What other problems stem from this problem? •  How would they feel if it was solved? •  How much of their monthly budget would they put toward a soluUon? •  If presented with a soluUon, what could stop them from using the soluUon? •  What are their shooUng for? •  What are their professional goals? •  What roadblocks are they facing when aiming for those goals?

#5. Be skepUcal.

#realtalk:

What do I mean “skepUcal?”

•  What if they aren’t right? (you know who I mean) •  What if that one person is right? •  What if your first three validaUng points didn’t exist? •  What if the most constant thing vanished? •  What if your primary persona didn’t exist? •  10th man rule/argumentaUve theory/odd man out theory : do it

For the love of goodness gracious:

Embrace and reward skepUcism.

#6. Minimum sellable product.*

* Versus MVP.

#realtalk: THE DREAM.

#realtalk: MVP.

#realtalk: MSP.

#7. Double back…a dozen Umes.

…aka checking your hypotheses.

#realtalk:

What do I mean “validate?”

•  Troll feature request forms (yours and others) •  Visit tradeshows, shake hands, ask them what challenges they are facing •  Get a CAB early, grow it steadily •  Get your prototype into customer hands as quickly as you can •  Do retros on market failures – awkwardddd, but valuable •  Do retros on lost deals, cancelled customers •  Write your assumpUons on a wall and revisit them frequently


Don’t base anything on what is listed a trend to watch.

#8. Repeat arer me: acIvaIon & retenIon.

Everything else comes arer PMF.

AcquisiUon

AcUvaUon

RetenUon

Revenue

Referral

hXp://www.slideshare.net/Startonomics/startup-‐metrics-‐for-‐pirates-‐presentaUon

McClure’s Startup Metrics

AcquisiUon

AcIvaIon

RetenIon

Revenue

Referral

hXp://www.slideshare.net/Startonomics/startup-‐metrics-‐for-‐pirates-‐presentaUon

McClure’s Startup Metrics

#9. Architect for speed

#realtalk:

What do I mean “architect for speed?”

•  Plug and play plauorms as much as you can •  Don’t build too deep too early •  Think flexibility from the get go •  Your first processes should be around iteraUon •  Your first hires should pride themselves in their ability to adapt •  Culture should reward fluidity


Don’t build for progress sake.

#10. Validate QualitaUvely, Verify QuanUtaUvely

#realtalk:

So you have PMF, now what?

Growth & Product Vision

Next up…

Growth.

Product Vision.

hXp://svpg.com/product-‐market-‐fit-‐vs-‐product-‐vision/

Don’t forget…it’s not opUonal.

Thank you! QuesUons?

Joanna Lord CMO, BigDoor

@joannalord NEXT : April 30, 2014

Technology

Finding Product/Market Fit